Article 2 Interpretation

In this Order—

• “the bank”, in relation to any undertaking, means the bank in the same group as that undertaking in respect of which the PRA is satisfied that the general conditions for the exercise of a stabilisation power are met;

• “covered bond vehicle” means a limited liability partnership—

  1. (a)

     which is a party to a capital market arrangement (within the meaning given in section 72B of the Insolvency Act 1986^f1) or a transaction in pursuance of such a capital market arrangement; and

  2. (b)

     whose trade or business (ignoring any incidental activities) consists wholly or mainly of one or both of the following—

     1. (i)

        providing guarantees;

     2. (ii)

        acquiring, owning and managing assets directly or indirectly forming the whole or part of the security for the capital market arrangement;

• “financial holding company” means a company which is—

  1. (a)

     a financial institution; and

  2. (b)

     a parent whose subsidiaries are exclusively or mainly—

     1. (i)

        credit institutions;

     2. (ii)

        financial institutions;

     3. (iii)

        investment exchanges;

     4. (iv)

        investment firms; or

     5. (v)

        central counterparties;

• “financial institution” has the meaning given by point (26) of Article 4(1) of the Capital Requirements Regulation;

• “mixed activity holding company” means a parent—

  1. (a)

     whose subsidiaries include at least one—

     1. (i)

        credit institution;

     2. (ii)

        investment firm; or

     3. (iii)

        central counterparty;

  2. (b)

     which is not itself a credit institution, investment firm or central counterparty; and

  3. (c)

     which, together with its subsidiaries, constitutes a group which—

     1. (i)

        fails to meet condition (b)(i) in point 14 of Article 2 of the Supplementary Supervision Directive (condition for group being considered a financial conglomerate that its activities occur mainly in the financial sector);

     2. (ii)

        if its subsidiaries include a central counterparty or investment exchange, would fail to meet that condition if such entities were financial sector entities for the purposes of Article 3(1) of the Supplementary Supervision Directive;

• “parent” means a parent undertaking within the meaning given by section 1162 of the Companies Act 2006^f2;

• “securitisation company” means—

  1. (a)

     a company of a kind mentioned in section 83(2) of the Finance Act 2005^f3 (meaning of “securitisation company”); or

  2. (b)

     a company that meets condition A specified in regulation 4 of the Taxation of Securitisation Companies Regulations 2006^f4 (meaning of “securitisation company”); and

• “subsidiary” means a “subsidiary undertaking” within the meaning given by section 1162 of the Companies Act 2006.

In this article, for the interpretation of “financial holding company”, “financial institution” and “mixed activity holding company”—

• “the Capital Requirements Regulation” means Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26th June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No. 648/2012^f5;

• “central counterparty” has the meaning given by section 313(1) of the Financial Services and Markets Act 2000^f6;

• “credit institution” has the meaning given by point (1) of Article 4(1) of the Capital Requirements Regulation;

• “investment firm” has the meaning given by point (2) of Article 4(1) of the Capital Requirements Regulation; and

• “the Supplementary Supervision Directive” means Directive 2002/87/EC of the European Parliament and of the Council of 16th December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate and amending Council Directives 73/239/EEC, 79/267/EEC, 92/49/EEC, 92/96/EEC, 93/6/EEC and 93/22EEC and Directives 98/78/EC and 2000/12/EC of the European Parliament and of the Council^f7.